Reference Dependence—Economic Implications
Lecture no. 4 from the course: Behavioral Economics: When Psychology and Economics Collide
Taught by Professor Scott Huettel | 28 min | Categories: The Great Courses Plus Online Economics & Finance Courses
“Reference dependence” is one of the most central concepts in behavioral economics. Learn how human beings use value to create an expectation or reference point in many decision-making situations, leading to biases that affect choices. Consider how these biases influence both individual and market behavior, and how understanding them can help us make better decisions.